Export Import Bank raises $10 billion in London Stock Exchange bond

The Export Import Bank of India has raised $10 billion with a bond issuance on the London Stock Exchange (LSE).

The 10-year dollar bonds were nearly two times oversubscribed.

The proceeds raised will be used by the EXIM Bank to support Indian project exports, overseas investment by way of long term credit and its lines of credit portfolio.

"The notes achieved the tightest ever spread over US Treasury for an Indian entity for a 10-year issuance," LSE said in a statement.

The bond has a 3.897 per cent annual yield and secured high investor support from across the world, the exchange said.

David Rasquinha, Managing Director of EXIM Bank, said that the institution is a regular issuer in the international debt capital markets and has a largely dollarised loan book.

He said: "This was our second foray to the 144 A market as part of our constant endeavour to further strengthen and foster long term relationships with global investors".

"Through a well-designed and finely executed marketing strategy, we achieved the tightest ever 10-year US treasury spread by an Indian issuer while simultaneously attracting top quality investors in the order book. Through this issuance the EXIM has yet again created a liquid benchmark 10-year curve out of India," he added.

Debasish Mallick, Deputy Managing Director, EXIM Bank, said roadshows held in Hong Kong, Singapore, London and key US centres were successful in marketing the investment proposition to high quality institutional investors.

"When the bond was launched, these investors responded with encouragingly large orders, enabling the book to build rapidly and enabling a fine pricing," he said.

EXIM Bank, one of the world's premier export finance institution offering a comprehensive range of products and services, becomes the year's largest quasi-sovereign issuance from Asia in the international debt capital markets.

Nikhil Rathi, CEO, London Stock Exchange plc,welcomed EXIM's inaugural bond on the exchange's International Securities Market.

"Through our International Securities Market, issuers benefit from an efficient listing process and access to the deepest pool of internationally oriented capital in the world," he said.

"EXIM Bank is global pioneer in export finance supporting Indias global growth and trade agenda. The successful pricing reinforces London Stock Exchange's position as the key destination for Indian and global capital raising," he added.

London Stock Exchange claims to have developed a leading position as the global venue of choice for Indian issuers, including some recent landmark green bonds such as Indian Power Finance Corporation (PFC), Indian Railway Finance Corporation (IRFC) and Axis Green as well as retail bond from Eros International.

It has welcomed 44 Masala bonds and helped supranational and Indian corporates raise over 6.5 billion dollar equivalent in mostly oversubscribed bond offerings.

"London provides unparalleled access to international investors specialising in Indian infrastructure investment," LSE said.

ISM has been designed to meet the demands of issuers and investors to improve the effectiveness and competitiveness of the UK primary debt markets, providing greater choice for a variety of fixed income issuers.